RPVCCA_RDA_SR_2011_09_06_E_Draft_Pymt_Schedule_ROPSCITY OF RANCHO PALOS VERDES
TO:
FROM:
SUBJECT:
DATE:
Reviewed by:
CHAIRMAN LONG AND MEMBERS OF THE BOARD OF DIRECTORS
OF THE REDEVELOPMENT AGENCY
CAROL W.LYNCH,AGENCY COUNSEL
APPROVAL OF A PRELIMINARY DRAFT OF AN INITIAL
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
SEPTEMBER 6,2011
CAROLYN LEHR,EXECUTIVE DIRECTOR@tor <:L
RECOMMENDATION
Staff recommends that the Agency adopt Resolution No.RDA 2011-_,a Resolution of the
Rancho Palos Verdes Redevelopment Agency,approving a preliminary draft of an initial
recognized obligation payment schedule.
DISCUSSION
AS X1 26,which was signed by the Governor of California on June,29,2011,added Parts 1.8
and 1.85 to the Community Redevelopment Law.Part 1.8 immediately suspends most
redevelopment agency activities and,among other things,prohibits redevelopment agencies
from incurring indebtedness or entering into or modifying contracts.Part 1.85 provides that on
October 1,2011,all existing redevelopment agencies and redevelopment agency components
of community development agencies are dissolved,and successor agencies are designated as
successor entities to the former redevelopment agencies.Part 1.85 imposes numerous
requirements on the successor agencies and subjects successor agency actions to the review
of oversight boards established under Part 1.85.
AS X1 27 was signed by the Governor concurrently with AS X1 26 and added Part 1.9 to the
Community Redevelopment Law.Part 1.9 establishes an Alternative Voluntary
Redevelopment Program whereby a redevelopment agency will,notwithstanding Parts 1.8 and
1.85,be authorized to continue to exist and carry out the provisions of the Community
Redevelopment Law.To opt into the Alternative Voluntary Redevelopment Program,a city
must adopt an ordinance by which the city agrees to make specified annual payments to the
county auditor-controller for allocation to special districts and educational entities.On August
16,2011,the City Council adopted Ordinance No.524 opting into the Alternative Voluntary
Redevelopment Program.
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Approval of a Preliminary Draft of an Initial Recognized Obligation Payment Schedule
September 6,2011
Page 2 of 2
Section 34169 of Part 1.8 requires an agency to approve a preliminary draft of an initial
recognized obligation payment schedule by September 30th •However,Part 1.9 provides that if
a city council timely opts into the Alternative Voluntary Redevelopment Program,then the
agency will be exempt from the provisions of Parts 1.8 and 1.85.Thus,an agency should only
be required to approve a draft recognized obligation payment schedule if the city council has
not adopted an opt in ordinance by September 30th •However,the stay issued by the
California Supreme Court,discussed below,means all agencies must approve a preliminary
draft of a recognized obligation payment schedule by September 30th even if the council has
adopted an opt in ordinance.
The California Redevelopment Association and League of California Cities have filed a lawsuit
in the Supreme Court of California alleging that AS X1 26 and AS X1 27 are unconstitutional.
On August 11,2011,the Supreme Court of California decided to hear the case and set a
briefing schedule designed to allow the Supreme Court to decide the case before January 15,
2012.On August 11,2011,the Supreme Court also issued a stay order,which was
subsequently modified on August 17,2011.Pursuant to the modified stay order,the Supreme
Court granted a stay of all of AS X1 27 (Le.,Part 1.9),except for Health and Safety Code
Section 34194(b)(2)(relatihg to the determination of cities'fiscal year 2011-12 remittance
amounts)and a partial stay of AS X1 26.With respect to AS X1 26,Part 1.85 was stayed in its
entirety,but Part 1.8 (including Health and Safety Code Section 34169)was not stayed.Thus,
the requirements of Part 1.8,including the requirement to prepare a preliminary draft of an
initial recognized obligation payment schedule,are applicable because the provisions of Part
1.9,which exempts agencies from the provisions of Part 1.8 upon adoption of an opt in
ordinance,have been stayed.
Accordingly,Staff recommends that the Agency approve a preliminary draft of a recognized
obligation payment schedule.
FISCAL IMPACT
None.
ENVIRONMENTAL IMPACT
There will be no new environmental impact associated with any of the decisions outlined
above.
Attachment:
Resolution No.RDA 2011-and Exhibit A
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RESOLUTION NO.RDA 2011-_
A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY APPROVING A PRELIMINARY DRAFT OF AN INITIAL
RECOGNIZED OBLIGATION PAYMENT SCHEDULE PURSUANT TO PART
1.8 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE
AND TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH.
RECITALS:
A.The Rancho Palos Verdes Redevelopment Agency (the "Agency")is a
redevelopment agency in the City of Rancho Palos Verdes (the "City"),created pursuant
to the Community Redevelopment Law (Part 1 (commencing with Section 33000)of
Division 24 of the California Health and Safety Code)(the "Redevelopment Law").
B.The City Council of the City (the "City Council")adopted Ordinance
No.190,approving and adopting the redevelopment plan for Project Area No.1,and
from time to time,the City Council has amended such redevelopment plan.The Agency
is and has been undertaking a program to redevelop the Project Area.
C.AB X1 26 was signed by the Governor of California on June 29,2011,
making certain changes to the Redevelopment Law,including adding Part 1.8
(commencing with Section 34161)and Part 1.85 (commencing with Section 34170)to
Division 24 of the California Health and Safety Code.Commencing upon the
effectiveness of AB X1 26,AB X1 26 suspends most redevelopment agency activities
and,among other things,prohibits redevelopment agencies from incurring indebtedness
or entering into or modifying contracts.Effective October 1,2011,AB X1 26 dissolves
all existing redevelopment agencies and redevelopment agency components of
community development agencies,designates successor agencies to the former
redevelopment agencies,imposes numerous requirements on the successor agencies
and subjects successor agency actions to the review of oversight boards established
pursuant to the provisions of Part 1.85.
D.Health and Safety Code Section 34169 (h),which is set forth in Part 1.8,
requires a redevelopment agency to prepare a preliminary draft of an initial recognized
obligation payment schedule by no later than September 30,2011,and provide it to the
successor agency,if a successor agency is established pursuant to Part 1.85.The
initial recognized obligation payment schedule must set forth the minimum payment
amounts and due dates of payments required by enforceable obligations for the six-
month period from January 1,2012 through June 30,2012.
E.AB X1 27 was signed by the Governor of California on June 29,2011,
adding Part 1.9 (commencing with Section 34192)to Division 24 of the California Health
and Safety Code.Part 1.9 establishes an Alternative Voluntary Redevelopment
Program whereby,notwithstanding the provisions of Part 1.8 and Part 1.85,a
redevelopment agency will be authorized to continue to exist and carry out the
provisions of the Redevelopment Law upon the enactment,prior to the applicable
R6874-0001\1389904vl.doc RDA E-3
deadline established in Part 1.9 (with the earliest deadline being October 1,2011),by
the city council of the city which includes that redevelopment agency of an ordinance to
comply with Part 1.9.Pursuant to Health and Safety Code Section 34192,if a city
participates in the Alternative Voluntary Redevelopment Program and complies with all
requirements and obligations contained in Part 1.9,the redevelopment agency in that
city will be exempt from Part 1.8 and Part 1.85.
F.The California Redevelopment Association and League of California Cities
have filed a lawsuit in the Supreme Court of California alleging that AS X1 26 and AS
X1 27 are unconstitutional.On August 11,2011,the Supreme Court of California
decided to hear the case and set a briefing schedule designed to allow the Supreme
Court to decide the case before January 15,2012.On August 11,2011,the Supreme
Court also issued a stay order,which was subsequently modified on August 17,2011.
Pursuant to the modified stay order,the Supreme Court granted a stay of all of AS X1
27 (Le.,Part 1.9),except for Health and Safety Code Section 34194(b)(2)(relating to
the determination of cities'fiscal year 2011-12 remittance amounts)and a partial stay
of AS X1 26.With respect to AS X1 26,Part 1.85 was stayed in its entirety,but Part 1.8
(including Health and Safety Code Section 34169)was not stayed.Accordingly,the
Agency desires to approve a preliminary draft of an initial recognized obligation
payment schedule.
NOW,THEREFORE,THE RANCHO PALOS VERDES REDEVELOPMENT
AGENCY HEREBY FINDS,DETERMINES,RESOLVES AND ORDERS AS FOLLOWS:
Section 1.The above recitals are true and correct and are a substantive part
of this Resolution.
Section 2.This Resolution is adopted pursuant to Health and Safety Code
Section 34169.
Section 3.The Agency hereby approves the preliminary draft of the initial
recognized obligation payment schedule substantial.ly in the form attached as Exhibit A
to this Resolution and incorporated herein by reference (the ''ROPS'').The Executive
Director of the Agency,in consultation with the Agency's legal counsel,may modify the
ROPS as the Executive Director or the Agency's legal counsel deems necessary or
advisable.
Section 4.The Agency Secretary is hereby authorized and directed to transmit
a copy of the ROPS to the successor agency designated pursuant to Part 1.85 if a
successor agency has been designated.
Section 5.The Agency hereby designates the Director of Finance of the City
of Rancho Palos Verdes as the official to whom the Department of Finance may make
requests for review in connection with the ROPS and who shall provide the Department
of Finance with the telephone number and e-mail contact information for the purpose of
communicating with the Department of Finance.
Resolution No.RDA 2011-_
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Section 6.The officers and staff of the Agency are herby authorized and
directed,jointly and severally,to do any and all things which they may deem necessary
or advisable to effectuate this Resolution,and any such actions previously taken by
such officers are hereby ratified and confirmed.
Section 7.The approval of the RaPS is not intended and shall not constitute a
wavier by the Agency of any rights the Agency may have to challenge the legality of all
or any portion of AB X1 26 or AB X1 27 through administrative or judicial proceedings.
Section 8.This Resolution has been reviewed with respect to applicability of
the California Environmental Quality Act ("CEQA"),the State CEQA Guidelines
(California Code of Regulations,Title 14,Sections 15060 et seq.,hereafter the
"Guidelines"),and the Agency's environmental guidelines.The Agency has determined
that this Resolution is not a "project"for purposes of CEQA,as that term is defined by
Guidelines Section 15378,because this Resolution is an organizational or
administrative activity that will not result in a direct or indirect physical change in the
environment.(Guidelines Section 15378(b)(5».
PASSED AND ADOPTED this 6th day of September 2011.
Agency Chair
Agency Secretary
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I,Carla Morreale,Agency Secretary of the Rancho Palos Verdes Redevelopment
Agency,hereby certify that the above Resolution No.RDA 2011-_was duly and
regularly passed and adopted by the said Board at regular meeting thereof held on
September 6,2011.
Agency Secretary
Resolution No.RDA 2011-_
Page 3 of 4
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Name of Redevelopment Agency:
Project Area(s)
Rancho Palos Verdes Redevelopment Agency
Project Area No.1
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
Per AS 26 -Section 34177
Exhibit A
Total
Outstanding Deb Total Due During
or Obligation as Fiscal Year 2011 Total Due Oct-
Project Name I Debt Obligation Pavee Description of June 30 2011 2012 Oct-ll Nov-ll Dec-ll Jan-12 Feb-12 Mar-12 Aor-12 May-12 Jun-12 11 thru Jun-12
Restructured debt to abate active landslides
1 1997 Tax Increment Bond County of los Annales within the Pro'ect Area 5.165,000.00 355,750.00 0.00 0.00 229,125.00 0.00 0.00 0.00 0.00 0.00 126,625.00 $355,750.00
Accrued interest on original debt to abate
2 1997 Deferred Interest Debt County of Los Angeles active landslides in the Pro 'ect Area 798,601.47 TBD!l 0.00 0.00 TBD!l 0.00 0.00 0.00 0.00 0.00 0.00 $-
3 Consolidated Loan from City
loan from City to abate active landslides in the
City of Rancho Palos Verdes Pro'eaArea 18,568,185.88 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $-
Tax Sharing Agreement for Fire Los Angeles County Fire
4 Protection Protection District Fire orotection services NJA TBD 121 TBD 121 TBD 12\TBD 12\TBD 12\TBD 12\TBD 12\TBDI2I TBD 121 TBD 121 $-
5 Property Tax Administration Fees County of Los Angeles Administration of the property tax increment NJA TBD(3 0.00 0.00 TBD(3 0.00 0.00 0.00 0.00 0.00 0.00 $-
6 Contract for Audit Diehl,Evans &Co ••LLP Independent audit of financial statements 9,400.00 9.400.00 3,133.33 3,133.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $6,266.67
Abalone Cove Landsfide Property assessment for parcels owned by
71 Abalone Cove ProoerlY Assessment Abatement District Aaenev 0.00 7,008.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,218.66 $7,218.66
Klondike Canyon Landslide Property assessment for parcels owned by
8 Klondike Canyon Property Assessment Abatement District ADeney 0.00 10.967.72 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,296.75 $11,296.75
9 Contract for ADeney Attornev Richards,Watson &Gershon Leaal services NlA 10,000.00 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 833.33 $7,499.97
Loan to RDA Housing Fund that was then
City of Rancho Palos Verdes loaned to AMCAL to fund project construction
10 AMCAL Affardable Hausino Praiect Affordable Housina Fund casts 1,766,368.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $-
11 $-
12 $-
13 $-
14 $-
15 $-
16 $-
171 $-
18 $-
19 $-
20 $-
21 $-
22 $-
23 $-
24 $
25 $-
26 $
27:$
28 $-
29 $-
30)$-
Totals $26,307,555.35 $393,126.13 $3.966.66 $3,966.67 $229,958.33 $833.33 $833.33 $833.33 $833.33 $833.33 $145,973.74 $388,032.05
(1)To Be Determined -The County of Los Angeles impounds Agency tax increment to repay the debt to the County.Each December 2nd,after making the scheduled Tax Increment Bond payments,the remaining amount of
impounded tax increment is applied to the Deferred Interest Debt.
(2)To Be Determined -The Tax Sharing Agreement stipUlates that 17%of gross tax increment is to be passed thru to the County Fire Protection District.
(3)To Be Detennined •Property Tax Administration Fees are determined by the County of Los Angeles.The Agency typically receives notice of the fee amount in December of each year.
RDA E-6